Markets Overview

  • ASX SPI 200 futures up 0.9% to 7,051.00
  • Dow Average up 0.9% to 32,544.59
  • Aussie down 0.7% to 0.6669 per US$
  • U.S. 10-year yield rose 11.1bps to 3.5980%
  • Australia 3-year bond yield fell 2 bps to 2.82%
  • Australia 10-year bond yield fell 5 bps to 3.19%
  • Gold spot down 1.9% to $1,940.65
  • Brent futures up 2.0% to $75.26/bbl

Economic Events

  • 10:30: (AU) Feb. Westpac Leading Index MoM, prior -0.08%
  • 11:00: (AU) Australia to Sell A$700 Million 3% 2033 Bonds

Stocks in Asia are set to follow US equities higher as concerns over financial stability ease and as investors prepare for the Federal Reserve’s interest-rate decision later Wednesday.

Australian and New Zealand government bond yields rose, tracking the action in the Treasury market on Tuesday. The two-year Treasury yield rose 19 basis points in whipsawing trade, the 10-year yield climbed 12 basis points and an index of the dollar was little changed.

The selling in government bonds alongside rising stock prices indicated fresh appetite for risk taking as investors looked to signs of stability after the collapse of three US banks and UBS Group AG’s takeover of Credit Suisse Group AG.

Treasury Secretary Janet Yellen said the US government could backstop deposits at other US lenders as it did with Silicon Valley Bank. Traders also placed greater odds that the Fed will raise interest rates 25 basis points after market pricing was split between a hike and a pause earlier in the week.

Fed officials are set to issue updated rate projections for the first time since December, offering guidance on whether they still expect any additional hikes this year.

Other News

Within hours of its state-backed takeover by UBS Group being announced, memorabilia bearing lender Credit Suisse’s name and logo was being put up for sale in Switzerland, marking the end of an era.

Dozens of bars of gold, stamped with the name of the issuer — the 167-year-old Credit Suisse — were uploaded to the country’s most popular online marketplaces, and

Blue and red ski hats bearing the ‘CS’ letters, which were the height of fashion in the 1970s, were getting bids of close to 200 Swiss francs ($216).

Other branded merch up for sale included stamps, old letters, and sports bags.

With it still unknown whether the Credit Suisse brand will be continued, the sellers are seeking to attract those looking to snap up a piece of Swiss financial history.